A Comprehensive Analysis of the Impediments Perceived by the Members of Farmer Producer Organizations in North Bihar, India

Abstract

The agriculture sector in India is currently facing several challenges, such as increasing landholding fragmentation, diminishing per-capita land availability, and rural youth's disinterest in farming. FPOs help small and marginal farmers by lowering transaction costs, facilitating credit sources for farmers, providing technical guidance, producing support and capacity building, and creating long-term sustainability to improve the farming community. This study investigates the constraints perceived by members of FPOs. Data were collected from 240 members across 6 FPOs. An ex-post facto research design was used to study four broad constraints regarding Producer Organization Promoting Institution’s (POPI’s) support, marketing, organizational technical and operational constraints. The Friedman two-way ANOVA rank test was used to analyze thirty-five statements under four broad constraints. The findings revealed that marketing is the most severe constraint, followed by constraints regarding POPI’s support as well as organizational, technical, and operational support. Under marketing constraints without guaranteed procurement systems, inadequate storage facilities are most severe. Under constraints perceived by FPO members regarding POPI’s support, considering resource-affluent areas and exclusive attention to progressive farmers are significant. Competition of villages to get benefits and irregular procurement of the produce are most significant constraints under organizational and technical constraints. The research indicates that by overcoming these obstacles with better infrastructure, fair distribution of resources, and improved connections to markets, one can boost the sustainability and economic feasibility of Farmer Producer Organizations, thereby enhancing socio-economic benefits for farmers in North Bihar.